Refusal to 14 day cooling off period as an existing customer - Hyperoptic

trick18

Hi everyone,

The Situation:

I recently entered into a new contract with Hyperoptic by changing my broadband package. Despite this being a new contract, Hyperoptic is telling me that there is no cooling-off period applicable to my situation because I’m already an existing customer. They are now insisting that if I want to cancel this new contract, I must pay an early termination fee.

Relevant Legislation:

Under the Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013, consumers are entitled to a 14-day cooling-off period for new contracts, including broadband services, even if they are existing customers and the new contract was entered into remotely (e.g., online or by phone). This means:

1. Cooling-off Period: The 14-day cooling-off period should apply to new contracts or changes made remotely, regardless of whether you are an existing customer.

2. Consumer Protection: If this cooling-off period is not communicated or honored, it could be a breach of consumer rights.

What I’ve Done:

I’ve contacted Hyperoptic about this issue, but they maintain that the cooling-off period does not apply to my new contract. They have refused to cancel the contract without charging an early termination fee.

Seeking Help:

I’m considering escalating this issue to the Ombudsman and exploring other options for resolution. If anyone has experienced a similar issue or has advice on how to address this effectively, your insights would be greatly appreciated. I’m also open to any legal advice or resources that could assist me.

Thank you in advance for your support!

Mark_d

You should go though the company's complaints procedure and then escalate to the ombudsman if still unhappy.  Good luck and thank you for warning us about Hyperoptic

Alderbank

You say you changed your broadband package.

Can you share some details such as when you first signed up and to what package, and when you changed? The reason I ask is because 'minimum period' is important here.

Hyperoptics's T&Cs say:
'your Package will be for a minimum commitment period lasting a certain number of months, which you agree to in your Order. We call this period the “Minimum Period”.

You can change your package at any time but your minimum period still applies. This is quite usual and is allowed by the regulator.
The reason this is allowed is because otherwise customers could sign up for a 24 month minimum period, which is much cheaper than a monthly rolling contract, then when they felt like leaving could just change to a different package and immediately cancel without penalty which would be unfair.

The T&Cs also say:
'You have the right to change your mind about purchasing our Services and cancel the Agreement at any time up to (and including) the 30th day that our Services are first active for your use as our Customer at your Home (the “Satisfaction Period”). This cancellation right only applies to the first time you order Services under this Agreement. It doesn’t apply to any further Services you order from us or other changes you ask us to make to your Services (including where you agree to a new Minimum Period in respect of them) during your continuing Agreement for Services with us.'

Is it this contract term which you are disputing?

trick18

Alderbank said:

You say you changed your broadband package.

Can you share some details such as when you first signed up and to what package, and when you changed? The reason I ask is because 'minimum period' is important here.

Hyperoptics's T&Cs say:
'your Package will be for a minimum commitment period lasting a certain number of months, which you agree to in your Order. We call this period the “Minimum Period”.

You can change your package at any time but your minimum period still applies. This is quite usual and is allowed by the regulator.
The reason this is allowed is because otherwise customers could sign up for a 24 month minimum period, which is much cheaper than a monthly rolling contract, then when they felt like leaving could just change to a different package and immediately cancel without penalty which would be unfair.

The T&Cs also say:
'You have the right to change your mind about purchasing our Services and cancel the Agreement at any time up to (and including) the 30th day that our Services are first active for your use as our Customer at your Home (the “Satisfaction Period”). This cancellation right only applies to the first time you order Services under this Agreement. It doesn’t apply to any further Services you order from us or other changes you ask us to make to your Services (including where you agree to a new Minimum Period in respect of them) during your continuing Agreement for Services with us.'

Is it this contract term which you are disputing?

Initial Contract Details:

• Original Sign-Up Date: 30 October 2012
• Original Package: Broadband (the exact term is unclear, but it has since ended)

Change of Package:

• Date of Change: 28 August 2024
• New Package Details: Re-contracted for broadband only, with a new 24-month minimum term.

I understand that the minimum period applies to the initial contract and that changing packages does not reset this period. However, my concern is not about the minimum period for the package but rather about the application of the cooling-off period for new contracts or changes made remotely.

I am disputing the interpretation of the cooling-off period application to new contracts or significant changes. Hyperoptic’s terms indicate that the cooling-off period applies to the first order only, but I believe this does not align with the statutory rights granted under consumer protection laws for new contracts or remote changes.

1. Regulation 29 - Right to Cancel:

   • This regulation provides that a consumer may cancel a distance or off-premises contract within the cooling-off period without giving any reason and without incurring any liability, except for specific circumstances outlined in the regulation. This applies to both new contracts and significant changes to existing contracts when entered into at a distance.

2. Regulation 30 - Normal Cancellation Period:

   • It specifies that the cancellation period for service contracts, including broadband services, ends 14 days after the day the contract is entered into. Since my change to the package constitutes a new contract, this cooling-off period should apply.

3. Regulation 31 - Cancellation Period Extended for Breach of Information Requirement:

   • If the trader does not provide the consumer with the required information about the right to cancel, the cancellation period can be extended. This means if Hyperoptic did not adequately inform me of my right to cancel within 14 days, the cooling-off period could be extended.

4. Regulation 32 - Exercise of the Right to Cancel:

   • This regulation allows consumers to cancel a contract by informing the trader of their decision. This right applies to new contracts or significant changes to existing contracts made remotely.
     
     
     

Given these regulations, it is clear that the statutory cooling-off period should apply to new contracts or substantial changes made remotely, regardless of whether they are made by existing customers or not. Hyperoptic’s stance that the cooling-off period applies only to the first order and not to new contracts or significant changes does not align with these statutory provisions.

iniltous

Were you outside any minimum term ? , obviously any previous minimum term still applies, otherwise someone could , after a very short period as a customer , upgrade to a new deal , and within the ‘cooling off period’ cancel the upgrade, it would be pretty unfair if that cancellation also applies to the deal you had before the upgrade, that would negate the point of minimum terms , if your situation is you were outside of any minimum term , took a new ‘deal’ and then cancelled within the cooling off period, then to be held to term on a deal that hadn’t really started , with them stating that as an existing customer the cooling off period doesn’t apply , seems wrong .

trick18

iniltous said:

Were you outside any minimum term ? , obviously any previous minimum term still applies, otherwise someone could , after a very short period as a customer , upgrade to a new deal , and within the ‘cooling off period’ cancel the upgrade, it would be pretty unfair if that cancellation also applies to the deal you had before the upgrade, that would negate the point of minimum terms , if your situation is you were outside of any minimum term , took a new ‘deal’ and then cancelled within the cooling off period, then to be held to term on a deal that hadn’t really started , with them stating that as an existing customer the cooling off period doesn’t apply , seems wrong .

I was outside of any previous minimum term when I agreed to the new contract with Hyperoptic. My previous contract had expired, and I entered into a new agreement solely for broadband services.

In this case, the key issue is that I was not informed that the cooling-off period would not apply to my situation. I believe I should still be entitled to cancel the new agreement within the statutory 14-day cooling-off period.

It seems unreasonable to deny the cooling-off period simply because I was an existing customer (had a pervious contract). The essence of the cooling-off period is to allow consumers a fair opportunity to reconsider their commitment, which, in my view, should apply regardless of my status as a previous customer. 

Alderbank

Thanks for your clarification.

Just to avoid confusion, Hyperoptic say 'Agreement' where you and I would say 'contract'.

The contract runs until either party (you or Hyperoptic) cancels it. 

The T&Cs say:

8.3 After your Minimum Period (if you had one), you can end the Agreement for our Services at any time without paying any Service Termination Fee, by following the instructions in Clause 8.5. If you only wish to change to another Package which is available at your Home, you can arrange this with our Customer Support without ending the Agreement.

Clause 8.5 says

to end the Agreement for our Service(s) you should contact us...explaining that you want to end the Service(s). Customer Support will let you know, when they acknowledge your request to terminate, if you’ll have to pay a Service Termination Fee and if you do, how much it will be. Our Service(s) will end 30 days after we receive your request to end them.

Once the existing contract has ended, I assume you could immediately start a new contract (agreement) with them and the new contract would have a 30 day cooling off cancellation period.

Did you go through the clause 8.5 process to end your contract?
Hyperoptic seem to be saying they have no record of your termination and you just asked to change to another package without ending the agreement as per 8.3. There is no right to a cooling off period mid-contract.

trick18

Alderbank said:

Thanks for your clarification.

Just to avoid confusion, Hyperoptic say 'Agreement' where you and I would say 'contract'.

The contract runs until either party (you or Hyperoptic) cancels it. 

The T&Cs say:

8.3 After your Minimum Period (if you had one), you can end the Agreement for our Services at any time without paying any Service Termination Fee, by following the instructions in Clause 8.5. If you only wish to change to another Package which is available at your Home, you can arrange this with our Customer Support without ending the Agreement.

Clause 8.5 says

to end the Agreement for our Service(s) you should contact us...explaining that you want to end the Service(s). Customer Support will let you know, when they acknowledge your request to terminate, if you’ll have to pay a Service Termination Fee and if you do, how much it will be. Our Service(s) will end 30 days after we receive your request to end them.

Once the existing contract has ended, I assume you could immediately start a new contract (agreement) with them and the new contract would have a 30 day cooling off cancellation period.

Did you go through the clause 8.5 process to end your contract?
Hyperoptic seem to be saying they have no record of your termination and you just asked to change to another package without ending the agreement as per 8.3. There is no right to a cooling off period mid-contract.

egarding your point about Clause 8.5 and the process to end the Agreement, I want to clarify my situation:

On 28 August 2024, I re-contracted with Hyperoptic for a new broadband-only service with a new 24-month minimum term. This was not a simple change of package under the same Agreement; rather, it was a fresh contract with different terms, reflecting the broadband-only package. My understanding is that, once my previous contract ended, I entered into a new agreement with Hyperoptic, which would then trigger my statutory right to a cooling-off period.

As such, my request for cancellation relates to this new contract I entered into and not a mid-contract change. This is why I believe I am entitled to a 14-day cooling-off period, as outlined by the Consumer Contracts (Information, Cancellation, and Additional Charges) Regulations 2013. The regulation provides consumers with the right to cancel a new contract entered into remotely within 14 days, and I argue that this applies in my case, given the significant contractual changes made and the start of a new minimum term.

To answer your question, I did not go through the Clause 8.5 process because I did not intend to end my previous Agreement mid-term. Instead, I entered into what I understand to be a new contract, which, according to consumer law, should include a cooling-off period.

The core of the issue is that Hyperoptic’s T&Cs suggest that the cooling-off period only applies to the first order under an Agreement. I believe this contradicts UK consumer protection laws, which apply to all new contracts made at a distance, including changes to existing services when they constitute new terms, as was the case here.

I hope this clears up the misunderstanding. I believe my request for cancellation should be honored under UK law, as this was a new contract, not simply a change within the same Agreement.

trick18

iniltous said:

Were you outside any minimum term ? , obviously any previous minimum term still applies, otherwise someone could , after a very short period as a customer , upgrade to a new deal , and within the ‘cooling off period’ cancel the upgrade, it would be pretty unfair if that cancellation also applies to the deal you had before the upgrade, that would negate the point of minimum terms , if your situation is you were outside of any minimum term , took a new ‘deal’ and then cancelled within the cooling off period, then to be held to term on a deal that hadn’t really started , with them stating that as an existing customer the cooling off period doesn’t apply , seems wrong .

Yes i agree, I was outside any minimum term from my previous contract and entered into a completely new contract, this new contract should be subject to the cooling-off period as per statutory consumer protection laws. This ensures that I have the opportunity to cancel the new agreement within 14 days if I choose to do so.